Azerbaijan, Baku /corr. Trend I.Khalilova / The National Bank of Azerbaijan (NBA) determined the schedule of capitalization of banks that have not implemented the requirements of a minimal amount of aggregate capital totaling AZN 10mln as of 1 July, according to the NBA. Six banks out of 43 banks functioning in Azerbaijan have not reached the required amount of capital (without Poctbank).
"As a result of meetings with shareholders of the banks, individual schedules for increasing the capital up to the required level have been established for each bank," the same source stated.
In reality four out of six banks began issuing shares to increase their authorized capital.
As of 1 August, the capital of 37 banks exceeded AZN 10mln. Their specific weight in the aggregate amount of capital of all banks made up 95%. Five banks have formed their capitals between AZN 5 and 10mln, one bank - AZN 3.5 and 5mln.
Poctbank does not carry out accounts due to full limitation of the banking operations. Three banks, Kauthar Bank, Euro Bank (formerly AzInvestBank) and Azal Bank, function with limitation of the licenses.
According to the banking legislation, several sanctions are applied to banks breaking the procedural norms of the NBA. These include changing their legal status and limitation of banking licenses. Despite NBA recommendations to unite capital, up to now, the banks have not submitted mutual proposals.
As of 1 August, the aggregate amount of all 43 banks functioning in Azerbaijan totaled AZN 891.6mln, an increase of 47.8% compared to the beginning of 2007.